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Demand For Baby Care Products Booming In India

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By Monica PallaviBaby care products is an umbrella term which includes a wide variety of products such as baby food, toiletries( diapers and wipes), hair care products, apparel, footwear and of course toys. Any product that meets the demand of an infant aged between 0-4 years of age is termed as a baby product. India, with a population of more than 1.28 billion ­ second only to China has around 27 million birth rates at an average rate of two babies per mother. Recent years have witnessed a sudden burst in the market for baby products in India. Increase in consumer spending, surge in income, rising literacy and working mothers are some of the factors which has led to the spurt of this market space. Retailers and manufactures are constantly developing innovative designs to appeal to the customers. As per industry estimates, 15 baby care products are sold online every minute in India.

According to a recent study published by research firm RNCOS, the domestic baby care product market is growing in sync with the retail industrial growth, and was estimated to be growing at a CAGR of around 17 percent between the years 2012 to 2018.

The dominant player in the Indian
baby care market is Johnson & Johnson with about 80 percent of the market share. Kimberly Clark (Huggies) and P & G ( Pampers) have monopoly over toiletries and diaper section while Johnson & Johnson mainly dominates the skin/ hair care section. Baby food market is dominated by Nestle Cerelac and Nestum. .Other Prominent market players include Aditya Birla Group, Amul, Brevi, Chicco, Dabur, Emami, Himalaya, Marico, Mothercare, Nestle, and Wipro.

According to a report published by Technavio ­ a marketing consulting firm, the baby care market in India is expected to grow at an annual rate of over 17% in terms of revenues during the 2014- 2019 period to reach over $31 billion, from $14 billion.

The last couple of years have seen a number of child-care websites sprouting into existence. Major E-retailers such Amazon, Flipkart, Firstcry, Babyoye, and Snapdeal have taken the lead in baby care segment and are offering great deals.

India is experiencing three population trends ­ Population of working age is growing, people are moving from rural to urban areas and lastly, rising number of middle-class population. These trends are expected to bring in an enormous growth in the baby care industry. Indian parents are more brand conscious, more educated and seek quality products above all else. Hence, innovative products and adequate marketing strategies will come a long way for online retail stores competing against each other for the sale of baby products. There is no doubt that baby products will penetrate deeper into Indian urban as well as rural market space. Customers are deeply interested in these categories and care a lot about the products they are buying for their children. Thus, making India, a lucrative market for the baby care industry.

• As per industry estimates, 15 baby care products are sold online every minute in India.

• The baby care market in India is expected to grow at an annual rate of over 17% in terms of revenues.

• Baby food market is dominated by Nestle Cerelac and Nestum.